What is the single biggest challenge facing today’s power broker? It’s All about the Agent
Ed Krafchow
President
Prudential CA/NV/TX Realty
www.prurealty.com
The single biggest challenge facing today’s power broker is keeping the agent at the center of the transaction as they deal with an increasingly shrewd and educated real estate consumer base.
Consumers now have an extensive collection of research tools at their disposal. From the newly launched Zillow.com to ForSaleByOwner.com, consumers are being empowered with the ability to learn more about homes and home values.
Agents must now spend more time than ever staying informed on market and industry trends in order to remain a step ahead and provide the best consultation to their clients. Brokerages can support their agents with intelligent tools that put information at their fingertips and allow them to respond quickly and accurately to client inquiries.
A tool such as Prudential’s proprietary WebTop 5 is completely focused on the agent and provides them with everything they need to serve their clients in one application. As the real estate industry becomes increasingly technology based, power brokers need to embrace and lead this change to transform the industry.
The real estate transaction has become a great deal more than the home sale alone. Competitive brokerages are expected to provide a comprehensive “one-stop shop” where clients are offered services ranging from insurance to mortgages. Vertical integration provides a well-coordinated home purchase experience for the consumer and anchors the agent at the center of a complex purchase.
Recruiting and retaining are critical aspects of any industry and today’s power broker must develop programs and strategies to ensure their agents are equipped to navigate their way through a changing market with success. As the market normalizes, there will be an opportunity for growth through consolidation and competitive brokers will create a balance of organic and acquisition-based growth.
Creating a business model that ties vertical and horizontal growth with technology ensures that today’s power broker can meet the challenges of a changing consumer base head on.
Choosing the Right Tools
Brian D. Wildermuth
President
SharperAgent
www.sharperagent.com
Today’s real estate environment is changing faster than ever before. The Internet is changing the way real estate is being bought and sold. Not because the Internet is a substitute for a professional Realtor’s market awareness and product knowledge, as many fear-mongers suggested years ago. On the contrary…it’s because the Internet has provided a way for consumers to learn more about the buying and selling process, to have real-time transactional information at their fingertips, to connect them with the right agent and/or brokerage, to search for homes without leaving the comfort of their own, and to keep agents in front of their customers on a more consistent basis. All of this heightens the consumer’s expectations of the agent’s ability to exceed their expectations.
While this advancement in our marketplace is exciting and energizing when looked at from 30,000 feet, a closer look presents a number of challenges for today’s Power Broker whose core differentiators and value propositions are narrowing. There is an increasing need for the broker to attract the best talent, provide an environment for the talent to be highly productive, and to retain their agents for as long as possible. The ability of a broker to deliver on these needs is contingent upon how well they adapt to the changing demands of technology and the Internet.
Today’s power broker must succeed in providing their agents with a comprehensive technology platform that allows their agents to manage all or most of their business from any location. This platform must include a suite of software and hardware that is integrated, is easy to access both on and off-site, is inclusive of a majority of the agent’s daily business tasks and functions, and above all, is easy to use. If this isn’t difficult enough, there is an added need to provide these tools at an affordable price that won’t break the typical agent’s budget. Now that’s challenging in and of itself.
While technology may be the biggest challenge facing today’s power broker, it is apparent just how many obstacles it can contain. Gaining a solid understanding may be extremely difficult to do, however, the answer is in selecting the appropriate tools to help you through your next phase of growth.
Harness the Power of the Web
Jim Gillespie
President & CEO
Coldwell Banker
www.coldwellbanker.com
Upfront control. That is what the Web has given the real estate consumer. They are utilizing the Web to scour listings in an effort to narrow their home search to a manageable few.
Remember the days when we controlled the entire process, starting with our customers going through mounds of MLS books? Those days are gone.
Although the power of knowledge has been transferred to the consumer, the sales associate remains an integral and valued part of the equation. The transaction is complex and the consumer cannot get a “right fit” from just looking online. They still need you. Consider the 2005 Internet vs. Traditional Buyer Study from the California Association of Realtors that found 82% of those who used the Web in the real estate process also worked with a sales associate.
Upfront control is a good thing for us. Those who use the Web spend just two weeks with their sales associate and visit 6.2 homes, compared to seven weeks and 14.5 homes for a non-Web-using buyer.
As the industry focuses more of its marketing dollars online, we must stay true to the basics and utilize the power of the Web properly. We must continue to provide strong content and respond to inquiries quickly.
We are in a fast-moving, fast-changing environment where new online bells and whistles are popping up each day. Neighborhood comparisons, school reports and mapping are some of the more popular tools in vogue today.
But are they more important than a hefty supply of photos and strong descriptions of the property? No. Imagine the consumer’s dismay when they are drawn to an advertised Web site, look at listings in their market and are met with few or poor photos and a vague description of the property. Not only does the sales associate lose, but so does his or her company. The consumer simply will not come back.
We must also continue to address response time to online inquiries. According to a 2004 Realtor.com report, more than 60% of online inquiries go unattended. Hopefully products like Coldwell Banker® LeadRouterSM, a cutting-edge lead distribution system, will change that. So far it has. The response time through LeadRouter is incredible with more than 64% of online leads contacted within 24 hours.
I have been in real estate for 31 years. The Web is changing our business more than all of the technological wonders of the previous decades combined. Yet the power of technology can only be utilized if we properly embrace it and use it to our advantage. |
